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					Award Winners
The Winning Teams of this year’s Pride in Performance Awards have been able to demonstrate their
strength and energy in going beyond the boundaries to achieve growth. Their outstanding cases reflect
very well the Jardine Matheson Group values of The Right People, Enterprise, Energy and Performance
that have translated into commercial success.

We received 19 entries for the 2011 PIP awards, from among which five teams were selected as
Category Winners in the categories of ‘Customer Focus’, ‘Marketing Excellence’, ‘Successful New
Venture’, ‘Innovation and Creativity’ and ‘Business Outperformance’.

The Judging Panel commended the winners for their remarkable achievements. We recognize that the
teams have taken great pride in their performance. They have overcome challenges, taken risks and
shown tenacity in the pursuit of their objectives.




Pride in Performance Awards 2011

After the Judges’ careful consideration, the Grand Prize for 2011 has been awarded to IKEA Hong Kong
for achieving outstanding growth despite operating in a mature market. After looking at the business
through the eyes of their customers, the IKEA team successfully mobilized its staff behind its mission
of ‘marketing being everyone’s responsibility’. By concentrating on low prices and being family
friendly, they became the fastest growing IKEA business globally. An impressive result which is a
testament to the team’s energy and enterprise!

I would like to congratulate all the PIP Award winners and thank all the participating teams for sharing
their successes with us.




Anthony Nightingale
15th April 2011
WINNERS
MARKETING EXCELLENCE
AND GRAND PRIZE WINNER
IKEA Hong Kong
CUSTOMER FOCUS
Lloyd & Partners
SUCCESSFUL NEW VENTURE
Jardine Lloyd Thompson
INNOVATION AND CREATIVITY
MCL Land
BUSINESS OUTPERFORMANCE
Mannings Hong Kong


PANEL OF JUDGES
Anthony Nightingale      Benjamin Hung             Eric Chan                             Robert Garman               Goh Chye Huat                    Michael Leung
(Panel Chairman)         (Guest Judge)             Chief Operating Officer               Executive Director          Managing Director, Singapore     Director, Sales & Marketing
Managing Director        Executive Director &      Cycle & Carriage Industries Pte Ltd   Hongkong Land (Singapore)   Jardine Lloyd Thompson Pte Ltd   Zung Fu
Jardine Matheson         Chief Executive Officer
                                                   Jardine Cycle & Carriage                                                                           Jardine Motors
                         Standard Chartered Bank
                         (Hong Kong) Ltd

Nick Price               James Riley               Alex Tay                              Djony Bunarto Tjondro       Giles White                      Ricky Wong
Director of Technology   Group Finance Director    Regional Director, South Asia         President Director          Group General Counsel            Chief Executive Officer
Mandarin Oriental        Jardine Matheson          Dairy Farm International South Asia   Astra Sedaya Finance        Jardine Matheson                 Jardine Fast Food
Hotel Group                                                                              Astra International                                          Restaurants (Taiwan) Ltd
                                                                                                                                                      Jardine Pacific

                                                                                                                                                                                    1
                                                           Grand Prize Winner
                                                           MARKETING EXCELLENCE
                                                           Category Winner

                                                           IKEA Hong Kong has pulled off a marketing coup by becoming the fastest growing IKEA business in
                                                           the world with a 20% sales growth in a mature market. This remarkable 2010 performance followed a
                                                           critical self-examination which led the management to concentrate its marketing efforts on a longer-term
                                                           strategy of showcasing IKEA’s low prices and family friendly environment.

                                                           Realizing that its people are its strongest asset, IKEA first focused on instilling a positive can-do team
                                                           culture with emphasis on marketing being everyone’s responsibility. It strived to understand its customers
    IKEA Hong Kong                                         with a thorough survey of their views, habits and perceptions, and developed a targeted advertising and
                                                           promotions campaign based on this result. This new marketing approach was reflected in the opening
    IKEA Pulls off a Marketing Revolution                  promotions for its Kowloon Bay store – instead of just announcing the launch, IKEA broadened its appeal
                                                           by highlighting its low prices and family friendly stores. The campaign was an outstanding success, winning
    “A remarkable business performance through an          several industry awards, including TVB’s ‘Most Popular TV Commercial Award’ and the Gold Kam Fan Award.
    integrated and customer focused marketing strategy.”   Within a month of the campaign launch, the new store had attracted nearly 400,000 visitors. In total, IKEA
                                                           experienced over one million additional store visits in 2010 compared to 2009.
    “IKEA achieved a major turnaround in customer
    perception and financial performance.”                 Through attractive displays and skilled merchandising, IKEA was able to successfully convert these
                                                           additional visits into sales receipts – 2010 recorded an 83% increase in underlying PBIT of US$21 million
    “The IKEA team demonstrated that ‘what gets            compared with 2009’s then record US$12 million. Best of all was a re-energized IKEA team with a recent
    measured gets done’.”                                  employee survey showing an all-time high satisfaction rating.

    The Judges




2
CUSTOMER FOCUS
Category Winner

Over the past 20 years, Jardine Lloyd Thompson subsidiary and wholesale insurance broker, Lloyd &
Partners Ltd (LPL), had developed a strong working relationship with Transocean, the world’s largest
offshore drilling contractor. This relationship was put to the ultimate test on 10th April 2010 when there
was an explosion and fire on Transocean’s semi-submersible drilling rig, Deepwater Horizon, in the
Gulf of Mexico. The rig soon sank with the regrettable loss of 11 crew members. An insurance claim for
US$560 million was triggered.

Fully aware of the many mammoth challenges confronting Transocean, LPL’s team pulled out all the stops
to minimize the paperwork and speed up the complex claims process, which involved dealing with several
                                                                                                                Lloyd & Partners
insurance companies and the Lloyd’s syndicate of underwriters. To further complicate matters the explosion      JLT Shines through Deepwater Horizon Tragedy
occurred while Transocean was in the middle of renewing its US$1 billion liability policy – which meant that
a renegotiation was necessary in the light of the Deepwater Horizon claim.
                                                                                                                “Their pooling of resources, crisis reaction
                                                                                                                and effective communications with their
The renewal was finalized on 30th April, and the Deepwater Horizon US$560 million claim was settled in
                                                                                                                client was exemplary.”
full on 6th May. The claims process was completed in a record-breaking 11 working days, which comprised
six days for establishing proof of loss and five days for payment in full. The LPL team’s ability to pull off   “A case where extraordinary effort taken to
the renegotiation and settlement in such a short time frame amidst heightened media attention is an
                                                                                                                give the best to the customer paid off.”
extraordinary achievement and testament to their dedication to putting the customer’s needs first. This
level of customer service underlines the reason why LPL has grown to become the world’s largest broker of       The Judges
offshore drilling rigs.




                                                                                                                                                               3
                                                    SUCCESSFUL NEW VENTURE
                                                    Category Winner

                                                    Rather than ignore the impact of the internet on its employee benefits (EB) business, Jardine Lloyd
                                                    Thompson (JLT) decided to embrace the cyber challenge with a new venture – an online benefits platform.
                                                    The aim was to transform its EB offering by appealing to individuals more used to a round-the-clock
                                                    access, as well as to develop an international market. JLT’s online brand BenPal was launched in 2009.
                                                    By the year end, BenPal was already delivering a new income stream, achieving revenue of just under
                                                    £1.5 million (US$2.3 million).

                                                    This online site allowing individuals to manage their benefits packages including medical and pensions
    Jardine Lloyd Thompson                          proved to be a runaway hit, winning new clients and transforming the landscape of JLT’s EB business. By
                                                    the end of 2010, JLT had signed up major multinationals such as Commerzbank, esure, and Hitachi as well
    Turning a Cyber Challenge into a
                                                    as locking in several existing large trust scheme clients including Booker, GKN and WPP. Direct revenues
    Growth Opportunity                              achieved for 2010 were £5.5 million (US$8.3 million), exceeding budget by 8%.

    “An innovative scheme with minimal capex.”      The creative energy, expertise and enterprise of the team behind BenPal were crucial to its success. The
                                                    team built the highly complex and sophisticated system from scratch in just eight months. To date BenPal
    “A well-considered technology investment        has achieved all the targets set out in its three-year business plan. Its superior technology has enhanced
    that has positioned JLT well for the future.”   JLT’s business proposition and competitive edge, widened its revenue base, increased sales and lowered
                                                    operating costs. It also offers JLT a platform on which to expand its EB business internationally.
    The Judges
                                                    Moving into 2011, and with opportunities arising from legislative changes and benefits trends, JLT is
                                                    confident BenPal will continue to soar. By 2015, BenPal is forecast to contribute 15% of total EB profits
                                                    and deliver a return on investment of 30%.




4
INNOVATION AND CREATIVITY
Category Winner

A winning combination of a unique product, innovative marketing and prudent cost management resulted
in MCL Land hitting the jackpot with its 132-unit luxury development Waterfall Gardens, Singapore.
Waterfall Gardens surpassed its original tender budget by nine-fold with a profit of S$156 million
(US$120 million) while its IRR rose from 10% to 38%, and elevated MCL Land’s reputation as a quality
developer in the high-end market.

After acquiring the site in 2006, MCL Land set out to create an architecturally unique residential
development. Waterfall Gardens’ design seamlessly integrates the interior and exterior aspects of the        MCL Land
development, and features high-end finishes. The marketing team took an innovative approach when they
decided to pre-launch their standout project in Indonesia and Hong Kong. It was the right decision as 85%
                                                                                                             Waterfall Gardens Turns in Windfall
pre-sales were achieved, with the remaining 15% quickly snapped up by local buyers. The project recorded
a benchmark average price of S$1,474 per square foot, with the highest price at S$1,840 per square           “Good vision – reading of the market
foot, a significant premium over developments in the vicinity. This tactical move had the added bonus of     requires a great team.”
reducing advertising costs by 40%; its final marketing cost of S$1.8 million represented only 0.4% of the
sale proceeds.                                                                                               “Innovative thinking in product and
                                                                                                             marketing strategies.”
Waterfall Gardens had its share of major challenges, including a sand shortage and the global financial
crisis, which could have impacted negatively on its financial returns. The team’s creative approach and      The Judges
can-do attitude, however, ensured that the project stayed on track at all times. For example, although
Waterfall Gardens was fully sold by 2007, the financial crisis in 2008 raised the spectre of defaults. The
team pro-actively arranged attractive financing packages for purchasers which resulted in the full take-up
of all units.




                                                                                                                                                    5
                                                     BUSINESS OUTPERFORMANCE
                                                     Category Winner

                                                     Mannings Hong Kong has proved that passion, innovation and entrepreneurship can deliver dramatic
                                                     growth even in a mature market during tough times. Determined to outperform, Mannings set out a list
                                                     of across-the-board initiatives in its 2008-2010 business plan. This has since delivered a 58% increase in
                                                     sales at an improved profit margin, as well as an annual EBIT growth of 18% over the plan period.

                                                     There were a number of initiatives in the area of operations. These included an ambitious store expansion
                                                     programme that embraced a new concept of opening smaller stores in strategic locations, which required

    Mannings Hong Kong                               specialist logistics support; working with suppliers to better forecast inventory needs; and creative
                                                     hiring strategies.
    Mannings Grows to Scale New Heights
                                                     On the marketing front, Mannings invested in research to identify consumer trends, and staff were trained
                                                     to respond quickly to turn these into business opportunities. Recognizing changing demographics in the
    “Excellent throughout – methodical,              population, Mannings expanded its range of products aimed at aging consumers, doubling its sales in this
    detailed and comprehensive in approach.”         sector to US$126 million by 2009. During the 2008/09 downturn, Mannings pro-actively moved to stock
                                                     more ‘do-it-yourself’ beauty products, generating incremental sales of US$7 million in the first half of 2009.
    “Bringing an already successful business
                                                     Other innovations which strengthened its brand included the introduction of real-time video consultations
    to a new height is always more challenging.      with pharmacists, as well as skincare products endorsed by dermatologists; the latter contributing
    Mannings’ outperformance is truly remarkable.”   incremental sales of over US$10 million in 2010.

    The Judges
                                                     Mannings’ outperformance has been recognized with numerous awards including ‘Brand with Corporate
                                                     Conscience & Social Responsibility’ in 2009 and the Retail Management Association’s ‘Courtesy Award’
                                                     in 2010.




6
OTHER SUBMISSIONS
CUSTOMER FOCUS                                              innovative realignment of the work schedules                 By 2010, the improvements were clear as Astra’s service
                                                            compensated for the delay and saved the client               rate had risen from 93.7% to above Toyota’s global
Hongkong Land                                               US$100,000. This pro-active approach, coupled with the       target of 96.5%, while its stock turnover rate reduced
Gaysorn Staff Demonstrates Courage in the Line of Fire      team’s efficient project management, high standards of       from 2.8 months to 1.2 months. These achievements
During the March to May political protests in Bangkok       quality assurance and engineering expertise, saved time      were recognized by Toyota, with Astra receiving seven
in 2010, the staff of Hongkong Land’s luxury retail mall,   and money for its client and has since earned the group      global awards – including Gold Winner for Outstanding
Gaysorn, demonstrated the true meaning of ‘putting the      further contracts.                                           Customer Service Award 2009. The results were also
customer first’ by ensuring the safety and security of                                                                   reflected in Astra’s bottom line, with sales of spare parts
tenants and property. When the protesters set up camp       JEC Singapore                                                contributing 30% to Astra’s 2010 gross profit, turning it
opposite Gaysorn, staff were instructed to vacate the       JEC Goes Beyond Boundaries to Transform its Business         from a complementary business into a main profit centre.
centre. But Gaysorn’s security and property management      Following a number of years of losses, Jardine
team elected to stay behind to secure the building.         Engineering Corporation Singapore (JEC) set out to           MARKETING EXCELLENCE
Throughout the crisis, the team went out of their way to    transform its business. A customer-centric approach
assist tenants and provide updates. Their vigilance was     was developed with a new team selected for their             Dairy Farm Singapore
rewarded with no injuries, no looting and only minimal      energy and enterprise. JEC positioned itself as a full       Growing in Sync with Singapore’s Heartbeat
damage to the building. The centre reopened two weeks       solutions provider, expanding its business to offer          As a responsible corporate citizen, Dairy Farm Singapore
after the riots were over and ended 2010 with only a 5%     contracting, sourcing and technical services. Its efforts    (DF) has been organizing community projects for
decrease in foot traffic.                                   paid off handsomely with its 2009 and 2010 PATAM of          many years. Its 2010 project themed ‘Heartbeat, Many
                                                            US$1.1 million and US$1.2 million, respectively, standing    People, One Community’ raised US$390,000 for charity
Gammon Construction                                         in stark contrast to previous losses. Today, with a strong   and was nominated for the President’s Social Charity
Gammon Stands a Cut Above                                   order book, JEC has earned a reputation for successfully     Award. Heartbeat showcased various fund raising
Gammon’s high standards of customer service in              completing complex and challenging projects.                 and community activities, the most memorable being
completing its initial contract for The One, an iconic                                                                   the gathering of 1,300 people for a mass percussion
commercial building in Hong Kong, won it two additional     Toyota Astra Motor                                           performance. Meanwhile, the promotions generated
contracts. In total, Gammon completed three contracts       Astra’s Focus on Customer Service Boosts Bottomline          an incremental income for DF of US$6.6 million, as well
worth US$15 million for The One – the foundation and        In 2004, Toyota Astra Motor in Indonesia took on the         as increasing sales and customer count by some 4%.
substructure, superstructure and building services –        challenge of enhancing customer service with an              DF’s community efforts also help to create a positive
which is unusual as developers prefer to appoint            overhaul of its parts operation. Initiatives included a      perception of the group with several operations
different contractors. Gammon differentiated itself         web-based online system to address communication             achieving enhanced brand profiles, such as Cold Storage
through its team’s attitude. When the project faced         and logistics issues as well as and the implementation       supermarkets being ranked 8th in the Top 100 Singapore
delays due to government bureaucracy, Gammon’s              of stringent warehouse controls to optimize efficiency.      Brands in 2009.




                                                                                                                                                                                       7
    Jardine OneSolution                                          expanded the hotel’s repeat customer base from 37%           and wear-and-tear threatened Hactl’s operational
    JOS Soars through Global Financial Crisis                    to 53% and generated US$6.4 million in revenue.              integrity, management sought an innovative solution.
    With companies cutting back their IT-related investments     Bar Boulud’s performance is a testament to the               Hactl partnered with external specialists to identify the
    following the global financial crisis, Jardine OneSolution   management’s meticulous planning, creative solutions         source of the problem and devise effective solutions.
    (JOS) decided on an aggressive marketing plan to pull in     and entrepreneurial spirit.                                  It implemented the Total Productive Maintenance
    new business. In late 2009, JOS launched its ‘Mid-Market                                                                  programme, which resolved the issues and improved its
    Customer Expansion Programme’ aimed at mid-market            INNOVATION AND CREATIVITY                                    cargo handling capacity by 35% to an annual 3.5 million
    business end-users with a year-on-year growth target of                                                                   tonnes. The programme also achieved cost savings,
    50% across its Hong Kong, mainland China, Singapore          Jardine Lloyd Thompson                                       greater maintenance flexibility and higher customer
    and Malaysia operations. When measured against               JLT Peru Succeeds with Innovative Insurance Products         satisfaction ratings. Its impact on the bottom line was
    the average market growth of 5% to 8%, this target           Jardine Lloyd Thompson (JLT) has helped to change            significant when in 2010 Hactl achieved a record profit of
    was ambitious. By end 2010, JOS had won 1,033 new            the perception of and prospects for Peru’s taxi drivers      US$142 million.
    customers, representing growth of 49%, while revenues        with its innovative Taxi Scheme. When in 2008, the
    had also jumped 49%. This remarkable achievement was         government introduced a US$100 million loan scheme to        Astra Honda Motor
    recognized by its peers when it was voted the winner of      encourage taxis to switch to gas-powered vehicles, banks     Astra Innovates its Honda Supply Chain to
                                                                 were reluctant to participate as taxi drivers were not       Outrun Yamaha
    SMBWorld Awards 2010.
                                                                 deemed to be credit worthy. JLT, in partnership with the     Indonesia’s manufacturer and distributor of Honda
                                                                 Association of Taxi Drivers, crafted a range of insurance    motorcycles, Astra Honda Motor, has outperformed the
    SUCCESSFUL NEW VENTURE
                                                                 products that minimized the credit risk for the banks. The   competition by successfully optimizing its supply chain
    Mandarin Oriental Hotel Group                                execution of this simple idea was complex as it involved     management across 130 local and overseas vendors,
    Bar Boulud Crafts a Recipe for Success                       convincing many parties who had entrenched beliefs, but      29 main dealers and 1,615 sub-dealers scattered across
    Creating an elegant restaurant out of what was originally    JLT’s leadership and drive won the day. By end 2010, more    the Indonesian archipelago. Astra embarked on the
    a storage space posed a tremendous challenge to              than 5,500 taxi drivers in Lima had signed on and to-date    challenging task of upgrading its complex supply chain
    Mandarin Oriental, London. The remarkable execution          the default stands at zero.                                  with a collaborative approach that embraced innovation,
    of the creation of Bar Boulud, however, has led to                                                                        commitment and teamwork. In addition to being able
    the successful transformation of the hotel’s food and        Hong Kong Air Cargo Terminals                                to better analyze demand, Astra’s improved supply
    beverage concepts. Named after Daniel Boulud, a three-       Hactl Flies High with State-of-the-Art Cargo                 chain management enables it to reduce stock levels,
                                                                 Handling System                                              particularly of low-selling products that result in poor
    Michelin-starred chef, Bar Boulud serves charcuterie
    and seasonal French brasserie fare. Since its launch in      As the world’s largest cargo terminal, Hong Kong Air         margins. As a result, Honda’s gross sales increased by
    May 2010, Bar Boulud has become the talk of London           Cargo Terminals Limited (Hactl) has to ensure that its       28% to US$3.7 billion, and its monthly inventory holding
    town. Within eight months, Bar Boulud had served a           Cargo Handling System functions at maximum efficiency        cost was reduced by 31%, from US$521 million in 2009 to
    record 91,454 covers, scored dozens of rave reviews,         to achieve just-in-time precision. When increased demand     US$399 million in 2010.



8
BUSINESS OUTPERFORMANCE                                      the brand. This initiative was supported by the creation        Astra Daihatsu Motor
                                                             of a business development centre that enables all               Agile Astra Rides Global Financial Crisis to
Pizza Hut Taiwan                                             operations – from sales, promotions and after-sales             Financial Victory
Pizza Hut Excels in Tough Times                              service – to assess up-to-date customer information and         With a weak rupiah pushing production costs higher in
The Pizza Hut team in Taiwan countered the economic          enhance communications. The results were outstanding.           2008, Astra Daihatsu Motor’s (ADM) biggest challenge
downturn in 2008 with a raft of creative product and         Zung Fu’s car sales rose from 5,448 to 16,292 between           was to align its production with market demand while
marketing innovations. The new value deal – a single         2008 and 2010, while net profit increased from                  maintaining its profit levels. By keeping its price
large pizza with four topping choices – was an instant hit   US$17.6 million to US$37.5 million. By the end of 2010,         competitive, providing credit facilities, streamlining
and contributed to a 14% sales growth. A B2B scheme          Zung Fu commanded an enviable average market share              factory operations and implementing stringent cost
offering customized pizza sets for corporate clients         of 66% in all its operating cities.                             controls, ADM was able to ride the tough three years and
achieved revenues of US$575,000 in 2008, increasing to                                                                       emerge a winner. As the market improved towards the
US$1.5 million by 2010. A tie-in programme with 7-Eleven     Hero Supermarket                                                end of 2009, ADM was able to increase its production
contributed an incremental US$1.4 million. Other             A Heroic Team Effort                                            capacity without adding more manpower, and by 2010
initiatives on the technical and operations front included   Hero Supermarket’s business in Indonesia had lost               ADM had doubled its 2007 capacity. This, coupled with
an improved one-number phone ordering system, an             momentum when, in 2007, a new management team                   an appreciating rupiah and creative marketing, ensured
upgraded e-ordering platform and the introduction of fast    was tasked with turning around the business. To instil          that Daihatsu maintained its market position as the
bake cooking technology. Pizza Hut Taiwan performed          a ‘one team, one company’ culture and achieve better            second best-selling car after Toyota. On the financial
magnificently between 2008 and 2010 with year-on-year        trading terms and inventory control, the merchandising          front, between 2007 and 2010, ADM’s PBT had increased
sales growth of 8.4% and PATAM growth of 27% to              departments of the different store formats were                 by 496%.
US$10.8 million.                                             centralized. To address Hero’s tarnished image as
                                                             a premium brand, 41 lower end supermarkets were
Zung Fu China                                                converted to the lower-price Giant format. This resulted
Zung Fu China Wins Market Share through                      in a 38% increase in average monthly turnover. Other
Holistic Customer Engagement                                 operational upgrades included refurbishing existing Hero
To differentiate itself, Zung Fu China decided to build      stores, investing in IT for better logistics and supply chain
its Mercedes Benz dealerships around customer                management, creative marketing initiatives and increased
engagement. This meant recognizing each customer             staff training. Following a 13.2% increase in sales in 2009
as an individual with preferences, purchasing power          and a 14.4% increase in 2010, Hero is now back on track
and psychological needs, and then tailoring marketing        and expects to double in size by 2013.
activities to the profile to create a lifelong loyalty to
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